Buy Walls
Large accumulations of buy orders at a specific price level, forming a barrier against downward price movement.
What is Buy Walls?
Buy walls appear as steep, cliff-like patterns in depth charts, indicating substantial buy orders at one price, like 50 ETH at $1,990. They suggest strong support, as heavy buying absorbs selling pressure, preventing drops. On Kraken’s BTC/USD, a buy wall at $59,500 signals bullish lean if thin sells follow.
Traders use buy walls to find entry points near support. However, walls can be manipulative if spoofed by large players canceling orders. In balanced markets, buy walls enhance liquidity, reducing slippage for sells.
Related Terms
TVL (DEX)
Total Value Locked (TVL) on a decentralized exchange (DEX) is the total dollar value of digital assets deposited into liquidity pools, representing the capital available for trading and fee generation.
Overcollateralization
A requirement for borrowers to deposit collateral worth more than the loan amount to mitigate risk.
Peer Prediction
A mechanism that incentivizes truthful reporting by rewarding participants based on how well their predictions align with others’ beliefs.
Ondo Finance
A blockchain-based platform tokenizing real-world assets like U.S. Treasuries and equities to provide institutional-grade financial products onchain.
Liquidity Fragmentation
The dispersion of liquidity across multiple pools, chains, or exchanges, leading to inefficient pricing and higher costs.
LMD-GHOST
A fork choice algorithm used with Casper FFG to determine the canonical head of the Ethereum Beacon Chain.